Buying a home can cost more than the price of the property - read below for more information and what it can cost for your next purchase. Contact me if you have any questions or concerns about your next step! 

Original Article HERE

Buying a home is a big investment – likely the largest one you will ever make. The cost to buy a home should be carefully considered to avoid the risk of financial difficulty in the future.

Since this decision has a large impact on your wallet, we want to take some time to explore the many costs associated with buying a home. Doing your homework and knowing the average cost of these services in your neighbourhood will help you choose a home within a realistic price range.

Deposit: Depending on your location and the price of a home, you may need to put a deposit on a home as a security measure to ensure you don’t lose it to another interested buyer. If you are required to pay a deposit, it will become part of your down payment once you have purchased the home.

Down Payment: In Canada, the minimum amount you need to put down on a home is 5%. While this is realistic for most first time home buyers, having a down payment of 20% or more will help buyers avoid paying Mortgage Loan Insurance.

Land Transfer Tax: When you buy a home, you are required to pay a land transfer tax to the province upon closing. This tax is normally based on the amount paid for the land, as well as the remaining amount on any mortgage or debt assumed as part of the arrangement to buy the land. Cost will vary depending on your municipality, the size of the land and other factors.  Alberta, Saskatchewan, and parts of Nova Scotia do not have Land Transfer Tax at all, while other provinces use a tiered system.

Appraisal Fee: An appraisal will normally cost between $200 and $300 but can vary depending on your location. This will help prevent you from borrowing more than you need to, and will prevent lenders from giving you too much.

Home Inspection: A home inspection is a necessary step in your home buying process and will normally cost an average of $350 depending on the size, age, and condition of the home. This helps ensure there are no unexpected maintenance or home improvement costs upon purchasing the home.

Property Insurance: While property insurance is likely already something you have factored into your budget, it’s important to do your research and find a reasonable quote that will ensure you are covered should anything unexpected happen.

Mortgage Insurance: There is mortgage life insurance, which is designed to protect the repayment of a mortgage if anything were to happen to you. There is also mortgage loan insurance if your down payment is less than 20% of the total house cost. Premiums for this type of insurance range from 0.5% to 3% and increase if you are self employed.

Lawyer Fees: The fee you will be charged by your lawyer will vary depending on the person representing you and must be paid upon closing. Ask your real estate agent for advice as they likely have a preferred trusted lawyer they can refer you to.

Title Insurance: Title insurance is a one-time-fee that provides protection from losses related to the properties title or ownership. Learn more about what it is in this blog post.

Property Taxes: The cost for property taxes is expressed as a dollar rate for every $1,000 estimated to be the market value of your property.

Maintenance and Energy Costs: Potentially your largest ongoing homeowner expense, these costs include lawn care/ yard work, professional services, additions/upgrades and the cost of keeping the house running year-round. You can use our monthly home budget planner to help map out all of these costs.

Moving Expenses: It’s easy to forget about the small things when moving, but it’s important to remember they can add up quickly! Consider the cost for phone, electricity, and other utility installations and don’t forget about movers, a moving truck and feeding your friends who are helping out!

Now that you have a better idea of the cost to buy a home, it’s time to hit the books to find out how much these services will cost in your area. Make a list, create a budget, and get started!

Download our Hidden Costs of Home Ownership guide to find out more the cost to buy a home. Looking for information on a cost not listed above? Leave a comment & we will do the research for you!

See below for a message from the REBGV President, Jill Oudil, and what effect it can have for you! 

Original article HERE

BC’s Office of the Superintendent of Real Estate (OSRE) is overseeing changes that’ll have a profound impact on our profession. The OSRE has begun implementing the 28 recommendations that the Real Estate Council of BC's Independent Advisory Group (IAG) made last year.

To date, the OSRE has implemented recommendations to:

• raise English proficiency standards for new entrants to the profession;
• overhaul the composition of people who sit on Council; and
• increase the maximum fine to $250,000 for licensees and to $500,000 for brokerages.

The most recent announcement was a ban on limited dual agency in the province.

Beginning January 15, 2018, you’ll no longer be able to provide agency representation to two parties in the same transaction. This means you won't be able to represent a buyer and a seller in a deal, or represent two competing buyers in the same transaction.

The OSRE exempted remote areas underserved by real estate licensees. The BC Real Estate Association (BCREA) advocated for this exemption and we're pleased it’s in the new rules. Double-ending will also be allowed within the rules, as will the practice of designated agency, wherewo licensees in the same brokerage represent different parties in a transaction.

Members are asking us questions about how the new rules will affect their responsibilities to clients and customers, particularly with respect to teams and commercial real estate. We're working with BCREA to surface your questions and concerns, get the answers you need and, where complexities continue to exist, forward them to the superintendent.

You can also give feedback on these changes directly to the OSRE until October 6. Click hereto do so.

(Read more about this change and the actions we’re taking in response in the week’s GR Voice article here.)

The remaining IAG recommendations will be implemented. It’s a matter of when and how.

We hosted a productive meeting with the superintendent and his team earlier this year. They expressed a willingness to maintain a regular dialogue to ensure they understand our perspective on the changes they’re making. We’ll look for every opportunity to continue these discussions in the weeks and months ahead.

We’re working with BCREA to understand the implications around each of the recommendations, identify the potential impact on our members, meet with government officials, and coordinate our advocacy efforts. Click here to read a letter BCREA sent Finance Minister Carol James on this issue.

We’re in a period of significant government intervention. National, provincial, and local politicians of all political stripes are responding to public concerns about housing affordability and a perceived lack of fairness and transparency in how the real estate transaction is conducted.

On these issues, governments at all levels have public support for change:

• Last year’s foreign buyer tax was popular, as was the City of Vancouver’s empty homes tax.
• In its bid to stave off potential mortgage debt issues, the federal government has made it harder for people to get a mortgage six times in the last nine years. They’re proposing regulation changes again, this time targeting people renewing uninsured mortgages.
• The new provincial government will spend $208 million to build 1,700 new affordable rental housing units over the next 10 years.

Our philosophy on government policy is simple: REALTORS® support measures that protect the public and strengthen accountability for those in our profession who act outside the public interest. We also support measures that improve housing affordability and build better communities in a meaningful, lasting, and sustainable way. 

We assess the merits of every proposed policy against these criteria.

We can’t be successful in our government advocacy work without your support. In this time of change, it’s important that you read our communications and give your feedback as we continue to work on your behalf.

If you have questions or comments, you can reach me at president@rebgv.org.

Sincerely,

Jill Oudil
President
Real Estate Board of Greater Vancouver 

Many Canadian Cities To See Years Of Falling House Prices: Moody's

Original Article HERE

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A majority of Canada's major cities will see falling single-family home prices over the next five years, including slight price declines in once-hot Vancouver, according to a forecast from Moody's Analytics.

 

But that won't include Toronto. Despite the city's detached homes being 60 per cent overvalued, a shortage of supply and an influx of wealth into the region will mean prices in Canada's largest city will continue to grow, though at a slower pace, the risk analysis firm predicted.

 

While Calgary, Montreal and Vancouver will experience slightly falling house prices over the next five years, cities such as Edmonton, Quebec City, Regina, Saskatoon and Winnipeg are expected to see more significant declines in single-family home prices, the forecast stated.

 

Prices will likely experience "a sharp change in momentum, especially if speculative home purchases in Toronto and Vancouver are reduced or shut down," wrote Moody's Analytics director Andres Carbacho-Burgos.

 

Interest rates have started to rise; the federal government has introduced tougher new standards for insured mortgage lending, and more tough mortgage rules may be on the way; and British Columbia and Ontario have slapped taxes on foreign homebuyers.

All this, coupled with the fact that affordability is near record lows, will keep Canada's housing market in a state of "retrenchment" for several years, Carbacho-Burgos wrote.

 

How different markets react to the new reality will differ widely, the report states.

 

Despite a steep drop in the average price since Ontario's new housing rules came into effect in April, Toronto and surrounding cities will continue to see house-price growth over the next five years, Carbacho-Burgos predicted.

 

But at an annual growth rate of 7.7 per cent, it will be considerably slower than the double-digit price growth seen in recent years.

The area has seen population growth that is faster than the national average for some years now, and housing supply has not kept up, the Moody's report noted. 

 

Carbacho-Burgos estimated that Toronto house prices are overvalued by 60 per cent compared to the long-run trend, while in Vancouver they are about 50-per-cent overvalued.

But unlike Toronto, Vancouver will see slight price declines over the next five years, falling an average of 0.3 per cent per year.

"With higher mortgage rates and restrictions on speculative purchases and foreign purchases, Vancouver's housing market can ... expect approximately level house prices over the coming five years," Carbacho-Burgos wrote.

 

Montreal will experience outright house-price declines, thanks to "slower demographics" than in other Canadian cities, the report predicted.

The forecast sees an absolute housing bust in St. John's, Nfld., predicting detached house prices there will fall by more than six per cent per year, between now and 2022.

The Market Report for August 2017 is now available via the Real Estate Board of Greater Vancouver. 

See below for 5 year trend for Greater Vancouver. 

If you have any questions about the current trend or are curious about what your home is worth. don't hesistate to contact me! 

For the full market report, click HERE

Original article HERE - By Holly Amaya | Aug 1, 2017

The dog days of summer are barking and Labor Day is just around the bend, signaling the end of yet another epic season in the sun. But before you give your flamingo pool float one last hurrah, take a break with some home maintenance prep for the changing season ahead.

We know what you're thinking: It's still summer, and you're being a buzzkill! Why worry now about what you can do next month? Well, as it turns out, some home maintenance tasks are best tackled in August, before temperatures start dipping.

Don't worry: We’re here to make all those chores as quick and easy on you as possible. With our handy checklist of home maintenance tasks, you can knock 'em out and be back to your barbecues and beach days in no time.

1. Check your washing machine connections

With the kids home from school and loads of sweaty garments to clean, your washing machine has likely taken a major beating this summer. With all that extra use, be sure to check that the water supply hoses which connect to your machine are in good condition.

"If they are older black rubber hoses, check for any bulging in the hose or any parts that look worn," says Tony Dunaway of BEST Plumbing of Cincinnati.

DIY: If you have worn hoses, you can swap them out with replacements for as little as $25, but it'll take you some effort. After you've turned off the water supply to the hoses, use adjustable pliers to loosen one hose at a time from the water supply, and then from the washing machine. You'll also need to make sure your new hose has a rubber washer in each end. If your hoses are made of rubber, consider upgrading and replacing them with rupture-proof, braided stainless-steel hoses.

Call in the pros: A pro will save you the effort, but you'll shell out around $140 for the job. How much are your days in the summer sun worth to you, anyhow?

2. Prune dead wood from your lawn and garden

Now's the time to tidy up your perennials and clear those unsightly dead twigs and branches, according to Tony Smith, president of Nursery Enterprises in Rexburg, ID.

Not only will you have a more attractive yard, but "by cleaning them out this summer, you'll create a clean slate—and next summer you'll have a better grasp in understanding your plants' health." Smith says.

DIY: You'll need pruners, a saw, and loppers (or a chain saw) to really attack this job.

Call in the pros: If the mere thought of wielding a chain saw gives you the heebie-jeebies, call in a professional landscape company to do the deed. The cost depends, of course, on the extent of the work and the size of your yard, but expect to pay at least $400 to $700 for a reputable, licensed tree trimmer.

3. Clear the gutters

Summer thunderstorms can clog your gutters and lead to costly water damage down the road. Properly functioning gutters direct water away from your home, but muck and debris can cause water to collect around your home's foundation and seep into your basement, if you have one. (Clogged gutters also make great homes for rodents and other vermin, just in case you needed another reason to tackle this task.)

DIY: Grab a ladder and shimmy up to the roof to inspect your gutters and drains, taking care to wear proper hand and eye protection. A simple garden trowel is effective for clearing most debris.

Call in the pros: Scared of heights? The average gutter job will run you around $150.

4. Deal with wasps, mosquitoes, and other insects

Wasp activity peaks in late summer; these insects become more aggressive and likely to sting in, you guessed it, August. So you'll want to spray for wasps and eliminate them, pronto.

DIY: "The first step to eliminating a wasp nest is to identify where the colony lives," says Dave Patterson, owner of Tactix Pest Control in Boise, ID. "Scan your lawn, looking for activity close to the ground. Once you find where the wasps are coming and going, apply wasp treatment to the entrance. Repeat this step every few days until you no longer see any activity."

Patterson also recommends patrolling your property for stagnant water, which can be a breeding ground for mosquitoes.

"First, drain any areas that are holding water—this step alone should significantly cut down on mosquito activity," he says. This means birdbaths, planters, or any other places where rainfall might have accumulated. "For further prevention, invest in forms of mosquito repellant like citronella candles, mosquito traps, and bug zappers."

Finally, check the seals around your home, including doors, windows, and dryer vents. Caulk or expanding sealants should be more than enough to seal most openings, according to Patterson.

Call in the pros: The national average cost of wasp removal ranges between $100 and $400. The cost of mosquito control depends on a variety of factors, including property size and treatment frequency. An entire summer of mosquito treatment could run $500 or more, but you're more likely to get a deal now that it's later in the season.

5. Clean your natural stone

“After a summer filled with nonstop grilling fests, family gatherings, and just general outdoor fun and wear and tear, it’s important to properly clean natural stone around your home—whether it's outdoor granite countertops, stone walkways, or patios—to prevent food, dirt, and oil stains from setting in and leaving permanent marks," says James Freeman, chief operating officer of Colonial Marble & Granite.

DIY: Start by dusting off stone surfaces, because abrasive materials such as dirt or sand (carried home from weekend getaways) can cause damage. Avoid using harsh cleaning products on natural stone; instead, choose a gentle cleanser with a neutral pH (preferably without soap, which causes streaks and film) and a soft cloth. For a longer-lasting finish and better protection against stains and grime, consider applying a water-based penetrating sealer.

Call in the pros: For serious stains, call in a professional stone maintenance company to restore your stone. Expect to spend anywhere between $400 and $1,100, depending on the level of grime.

6.  Get your furnace prepped for winter

“When residential furnaces fail, they typically do so during the coldest days of the year, which is why it’s important to have these systems inspected in August, before temperatures drop,” says Michael Petri, owner of Petri Plumbing & Heating, in New York City. “An annual tuneup and inspection can help homeowners save money, maintain comfort, and ensure safety when units are turned on for the first time in several months.”

Call in the pros: There's no shortcut for this one; maintaining your furnace is something you'll want to defer to a pro. Typically, HVAC companies run prewinter specials for this kind of work, so keep your eyes peeled for deals—but expect to spend between $130 and $450.

Great article underlining the importance of understanding everything you sign in a real estate agreement! Contact me for any details or information on what you need to know. 

Original article found HERE 

There's nothing like the humdrum of paperwork to bog down the excitement of a house hunt. But much like opening a new bank account or purchasing a car, buying a home comes with its fair share of contracts to sign and legalese to decode.

Arguably the first contract that comes into play for buyers is a Buyer Representation Agreement (commonly abbreviated to BRA).

A BRA is a legally binding contract that puts in writing that you will work exclusively with one real-estate brokerage for a certain amount of time. So, why would you sign a BRA as a buyer and what do you need to be aware of before putting your name on the dotted line?

HERO IMAGES VIA GETTY IMAGES

Below, TheRedPin has outlined the six key facts you need to be aware of regarding BRAs:

1. There are benefits to signing a BRA for home buyers

A home is a huge financial and emotional purchase, and a BRA helps bring some much-needed clarity and formality to the process.

By a signing a BRA, you can outline all your wants and needs for a property (legally on paper), clearly outlining all the services your realtor is obliged to deliver and remove any possible concerns around how commissions will be paid out.

A BRA also makes it so a real-estate brokerage has a fiduciary responsibility to work in your best interest and ensures they're prohibited from sharing anything you'd like to be kept private from the home seller. Remember, while your agent is helping you find a home, technically, they're also working with the seller's agent to get a deal closed. With a BRA, you can rest assured knowing your agent isn't sharing anything without your explicit permission.

2. Signing a BRA isn't a legal requirement

You don't have to sign a BRA and you can hire a real-estate agent when buying a home without putting anything on paper. While some agents have it as a personal customer-client requirement, many agents are receptive to working without a BRA in place.

The big takeaway here is, don't let anyone rush you into signing paperwork under the guise it's a legal requirement.

3. You don't have to buy a home even if you signed a BRA

BRAs have an expiry date and you can negotiate with your realtor the extent of the contract period.

Also, you're not required to buy a home during the BRA period, so if you negotiated a one-month contract with your agent, don't worry, you won't actually have to put an offer on a home during that time. A BRA can expire without you ever buying a home.

A BRA is a legal agreement, so take that into account when signing off your name and initials.

4. BRAs help sort out commissions

Real estate commissions are confusing, but BRAs go a long way in clearing them up.

As a buyer, you don't directly pay any commission to your realtor, as they receive their earnings from the home seller. However, in some cases, such as when the property you're looking at is a for sale by owner, you may have to fork over the commission yourself.

In such cases, a BRA helps clarify what percentage of a property's selling price you would owe to an agent. This helps remove any confusion around how and by how much your agent will be compensated ahead of time.

If you want to read more about how realtor commissions work, make sure to read TheRedPin's blog post here.

5. Keep an eye out for the holdover period

The holdover period is a clause present in most BRAs that all buyers should be aware of because, in those rare situations where it can come into play, it can add up to thousands more in unexpected commissions for buyers.

When does the holdover clause apply?

Let's say your agent showed you a home, and you liked it but didn't put an offer down. Once your BRA expires, you decide to go to the home seller directly (or with a different agent) and sign an agreement to purchase the property. If you do so during a short window of time after your BRA with the first agent expired, you may still have to pay them commissions.

The holdover clause is meant to protect the buyer's agent to ensure if he or she was responsible for showing you the property, they get appropriately compensated.

6. Read the fine print. BRAs can be tough to cancel

While some agents may be willing to cancel a BRA before it expires, that won't always be the case. A BRA is a legal agreement, so take that into account when signing off your name and initials. If you do face issues and an agent isn't willing to scrap or amend the contract, raising your concerns with your agent's brokerage should be your first course of action.

This bright and spacious corner suite, in sought after Keith One Hundred features two bedrooms, one and a half bathrooms and large open living dining rooms! Enjoy Souhwest exposure right across the street from beautiful Victoria Park. Spend evenings on the huge outdoor, wrap-around, covered and tiled, balcony. Feel the conveince of in-suite laundry, 1 parking place, one storage locker and exercise room! Updated building with beautiful grounds situated in a very conveinent Central Lonsdale location just steps away to everything! 

Contact me for details or to book a showing! 

Just one of the great things REALTORS® do for their community! Our thoughts are with those affected by the wildfires! 

Interesting article out of Huffington Post this morning:

Original article can be found HERE

Daniel Tencer - Senior Business Editor, HuffPost Canada

With a new foreign speculator's tax in place in southern Ontario and tighter new mortgage rules nationwide, many of the country's housing markets are showing signs of cooling off.

"Based on a survey of real estate boards that we conducted earlier this month, home sales declined on a [year-on-year] basis in July in most large Canadian cities west of Ottawa," National Bank economist Marc Pinsonneault wrote in a client note Monday.

"If that trend persists, home price growth might decelerate in these regions."

Sales were down 40.4 per cent in July in Greater Toronto, following the introduction of a slate of new housing rules by the provincial government, including expanded rent controls and a new 15-per-cent foreign speculator's tax.

In Greater Vancouver, sales slid 8.2 per cent lower this July compared to the same month a year ago.

Still, the latest edition of the Teranet house price index, which is put out in conjunction with National Bank, shows strong year-on-year price growth: The index was up 14.2 per cent in July from the same month a year earlier, the same pace as the previous month.

"The Teranet-National Bank data comes from a land registry, and so transactions are recorded in the land registry about one or two months after the sale is recorded in the (multiple listing service) system," he told BuzzBuzzHome last month.

"When you have a sudden shift in price trends, it's plausible that the Teranet-National Bank index will be lagged with the MLS [data]."

That shift in price trends seems to have taken place in Greater Toronto, where Toronto Real Estate Board data shows the average resale house price has already fallen 19 per cent from its peak. It was $746,218 in July, down from $920,791 in April.

But the latest Teranet house price index shows prices in Toronto were up 28 per cent in July from a year ago — though, again, that number may be lagging the reality in the city's market.

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In Greater Vancouver, the benchmark price of $1.02 million is 8.7 per cent higher than a year ago, a solid increase though much slower than the double-digit increases seen until last year. That's in line with Teranet's house price numbers, showing an 8.6 per cent increase over the past year.

Pinsonneault singled out two housing markets that are bucking the trend and doing better these days: Ottawa and Montreal. He called them "two areas where the Teranet-National Bank Home Price Index was at a record level in July."

House price growth accelerated to around 4 per cent in Ottawa and 5.5 per cent in Montreal on a year-over-year basis.

Pinsonneault predicted "pressure on home price growth" from new regulations that require borrowers of insured mortgages to undergo a "stress test" to ensure they can afford higher rates, and from Ontario's new housing rules.

"Downward pressure is likely to be more acute in regions where affordability has been eroded by past price escalation, while home prices should be more resilient in regions where homes are more affordable," Pinsonneault wrote.